Corporate Accountability Report Index-Summary

RADIO

See MEDIA

RAILROADS

– Credit card misuse alleged by Union Pacific employee not covered by SOX fraud provisions (DOL ARB), 1001
– Special shareholder meetings, Burlington Northern may not omit from proxy materials (SEC No-Action Letter), 132

REAL ESTATE

– BDO Seidman replaces fired auditor for Grand Court Lifestyles, no federal jurisdiction over failure to correct prior misstatements (S.D. Fla.), 615
– FCPA, plaintiff reported alleged violations, dismissal against AIG real estate subsidiary proper when not timely filed after OSHA dismissal (S.D.N.Y.), 1262
– Injunctions, appraisal required by law in reverse stock split by Foreclosure Freesearch Inc. adequately protects minority shareholder (Fla. Dist. Ct. App.), 612
– Removal, REIT, CAFA's provisions trump Securities Act, splitting circuits (7th Cir.), 69

REPORTING REQUIREMENTS

– Annual and special reports required by audit firms under new PCAOB rule, 1038; effective date delayed until Dec. 31 due to technical issues, 1185
– Annual testimony by chairman of oversight boards

See LEGISLATION, FEDERAL, HR 2664

– Cash flow statements, better information would help investors, says UK Financial Reporting Council, 897
– Comment letters from SEC focus on credit crunch, fair value, 209
– Complexity, GAAG roundtable wants to reduce, 929
– Data security and privacy breaches, large company 10-K reports often fail to address, 499
– Disclosure

See DISCLOSURE

– eXtensible Business Reporting Language (XBRL)

– – Capital risks, benefits of using XBRL, 5
– – GAAP codification, FASB will align with XBRL, 267; finalization vote expected by early June, 584; implementation likely to find accountants unprepared, Special Report, 651; website lists XBRL elements, 1213
– – Large cap companies and mutual funds, SEC adopts rules, 229; most large public companies already using, 602
– – SEC will hold seminar, In Brief, 672
– – Taxonomy draft, IASC seeks comments, 77

– Fair value

See FAIR VALUE

– Form 10-K draft sent to counsel and working group of non-lawyers protected (N.D. Ill.), 201
– Fraud

– – Audit reports fabricated or used improperly, claims SEC (D.D.C.), 1336
– – DOJ drops case against former OMB Director Stockman as CEO of Collins & Aikman (S.D.N.Y.), 73
– – False financial statements, Delphi former director agrees to fines, bar (E.D. Mich.), 421
– – GE settles SEC charges of misleading investors in false financial statements (D. Conn.), 979
– – Geotec Inc., false statements in SEC filings, charges brought (S.D. Fla.), 894
– – PurchasePro.com former CEO fined, barred for false financial filings (D.D.C.), 1183

– IFRS

See INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

– Indenture notes, timely filing with SEC not required, debtor not in default (5th Cir.), 507
– Interactive electronic disclosure system, SEC recommends creating, 101
– Internal controls

See INTERNAL CONTROLS

– Management commentary in financial reports, IASB best practices proposals issued for comment, 832
– Provisioning by banks, reporting of, working group with FASB-IASB proposed, 331
– Quarterly financial reports robust, better quality, says FASAC, 1212
– Retroactive application in financial statements, SEC staff views, 711
– Revocation of securities registration proper for chronically late filings (SEC), 141
– Sarbanes-Oxley bonus forfeiture provision, no private right of action (9th Cir.), 7
– Small companies, SEC filings lacking internal controls review considered materially deficient, 38
– Standards, changes coming in 2009, Outlook, 78
– Statute of limitations for stock option backdating, short-swing profits, false exemption claim filed does not toll (9th Cir.), 741
– Trust, SEC activism needed to resolve financial crisis, Special Report, 186

RES JUDICATA

– Attorney fee indemnification claim for breach of merger contract reinstated (Del.), 381
– Sanctions appropriate when claims filed by pro se against Skystar Biopharmaceutical in reverse merger barred, suit frivolous (D. Conn.), 1103

RESCUE OF FINANCIAL INDUSTRY

See EMERGENCY ECONOMIC STABILIZATION ACT

RESTATEMENTS

See FINANCIAL RESTATEMENTS

RESTAURANTS

– Forward looking statements Safe Harbor provisions, lack of scienter, require dismissal of misleading earnings potential claim against Darden Restaurants (M.D. Fla.), 1102

REVENUE RECOGNITION

– Apogee Tech., revenue inflation charges settled (D. Mass.), 671
– AstroPower Inc., former executives agree to fines, bar (D.D.C.), 321
– Auditor liability

– – Scienter not shown when improper recognition caused restatement (D. Idaho), 1213
– – U.S. Foodservice fraud, SEC attorney says “phantom audit evidence” defense requires reversal (SEC), 946

– Cardinal Health, revenue inflation charges settled with penalties, director and accounting bars (S.D.N.Y.), 671
– Dana Holding Corp. and former executives settle charges (SEC) (N.D. Ohio), 1161
– Discussion paper with proposed contract-based model issued by FASB-IASB, 17; gets positive comments by panelists , 424; issues such as contingencies discussed, 447; support drops as revenue complexity grows, survey says, 714; performance obligation should determine what to record, says FASB, 775; outreach planned to avoid problems with exposure draft, 951
– Fictitious licensing agreements, SEC sues former IBSG Intl. CEO (M.D. Fla.), 1209
– GAAP violations by Grant Thornton for software sales, scienter lacking (D. Utah), 1344
– GlobeTel Communications former CEO charged in fraudulent invoicing scheme (S.D. Fla.), 1131
– License types, differing treatment, scienter allegations in Cadence Design case lacking (N.D. Cal.), 1182
– Milestone method, FASB will propose as acceptable, 394
– Pleading requirements, SEC must review claims on the record to defend against dismissal (D.N.H.), 923; many claims dismissed after court finds lack of factual allegations, 1233
– PowerCold and officers, phony contract to boost revenues, penalties accepted (W.D. Tex.), 353
– Primary liability claims against secondary actors, “bright line” test requires summary judgment (D.N.J.), 580
– PurchasePro.com Inc. executive, SEC's proposed sanctions too harsh, court orders 5-year bar and fines (D.D.C.), 202
– Qwest Communications revenue improperly recorded as recurring, state secrets privilege does not erode defense (D. Colo.), 418
– Secret deal terms artificially boosted revenue, Isilon Systems settles, CFO charged (W.D. Wash.), 1129
– Standards, changes coming in 2009, Outlook, 78
– Whistleblowers, irregular revenue recognition in his department, not reporting of in-transit inventory discrepancy, was cause of VP firing (DOL ARB), 1097

RISK MANAGEMENT

– Assessment programs more important as SEC enforcement increasing, 632
– Audits

– – Planning must be risk-based, says IIA survey, 1056
– – Standards, new proposals by PCAOB, 76

– Business judgment rule, decisions resulting in substantial losses protected if no illegal activity and risk management systems in place, Analysis and Perspective, 647
– Business strategies must integrate risks, panel says, 1226
– Capital risk disclosure, eXtensible Business Reporting Language (XBRL) for, 5
– Climate change risk disclosure, groups push SEC for guidance, Special Report, 933
– Coordination needed to avoid gaps or duplication, Ernst & Young survey says, 1027
– Corporate boards management of risk must be broader, ongoing, Special Report, 1013
– Data security and privacy breaches, large company 10-K reports often fail to address, 499
– Disclosure project started by SEC to update rules, 968
– Disclosures that are realistic limit litigation, 7
– Engagement quality reviews, risk and disclaimers must be assessed, PCAOB comments say, 862; guidance will address financial reporting issues, 1137
– Enterprise risk management

– – COSO releases thought paper, In Brief, 1104
– – Long-term view, bigger picture seen, credit ratings may be affected also, 1090

– Executive compensation

– – Aligning compensation goals with firm goals important, report says, 1256
– – Financial services industry addressing reform to discourage risk, 410
– – Independent consultants, role changing as pay plans restructured, Special Report, 333
– – Proxy disclosure, SEC considers proposals on stock award valuation, say-on-pay, risk assessment, 786; summary of proposed rules, Analysis and Perspective, 1017; risk assessment, comments being reviewed, 1286; comments received can help companies prepare, 1331

– Fellows Program, SEC seeks experienced professionals to better manage risk, 574
– Financial companies, lack of understanding of risk fueled crisis, 467
– Financial industry regulation reforms proposed by Group of Thirty, 105
– IFRS conversion, audit risk could increase, knowledge base lacking, says PCAOB Chief Auditor Baumann, 1319
– Internal audits could not have averted crisis, but more are attuned to risks in new economy, 391
– Internal control guidance, study on fraud deterrence, risk management importance, coming from COSO, Focus, 1015
– IPO risk disclosures adequate, “bespeaks caution” doctrine requires dismissal of MF Global suit (S.D.N.Y.), 947
– PCAOB standards revisions, engagement quality review, risk assessment, interview with Baumann, 837
– Performance metrics, best practices explained, peer comparisons discouraged, Special Report, 364
– SEC needs to add non-attorneys to assess risk, says Comm'r Paredes, 318
– Securitized products, executive compensation rules proposed by EC, 922
– Succession planning must be organized to lower risk, 1310
– Systemic risk regulator

– – Authority of agency must be clear, says Comm'r Paredes, 919
– – Bipartisan support needed to reform financial sector, says Kanjorski (D-Pa), 538
– – Cooperation pledged by Dodd (D-Conn) and Frank (D-Mass), 411
– – Council of regulators

– – – Hybrid approach favored by Schapiro, 1230
– – – More effective in protecting investors than one agency, says Comm'r Aguilar, 696
– – – Supplementation of primary regulator role, says Comm'r Aguilar, 501

– – Early detection, creation of council, supported by Dodd (D-Conn), others, 575
– – Federal securities laws must be respected by risk regulator, says Comm'r Paredes, 576
– – Frank (D-Mass) on first phase of regulatory reform, 164; opposition to FRB in role is growing, 315; hearings scheduled, support for concept grows, 316; witnesses favor plan, Frank is ready to draft bill, 347
– – Reform package proposed by Obama, 764; giving authority to Federal Reserve opposed by IWG, others, 918
– – Regulatory reform blueprint expected soon, overhaul of agencies and duties possible, 348
– – Short-termism must be addressed to lower risk, says Schapiro, 1158
– – Three regulators enough to manage market, says Comm. on Capital Markets Regulation, 670
– – Witnesses at Homeland Security and Government Affairs Committee hearing like idea, disagree on structure, 286; ICI white paper details proposal, 288

– Taxes, IRS to discuss with large companies, 1158
– Top-down, risk-based audit approach promoted by CAQ, 208